S&P downgrades Socar

S&P said it lowered its ratings on State Oil Co. of Azerbaijan Republic (Socar) to BB- from BB and removed the rating from CreditWatch negative, where it was placed on July 14.

The outlook is stable.

“The downgrade reflects our view that government support may not be sufficient to offset the risks related to Socar's high and increasing debt, heavy capital expenditures plans, aggressive financial policy, lack of transparency and diminishing role vis-a-vis other government-related entities in the country,” the agency said in a news release.

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